Real estate norms may be tightened further

A meeting held by the Political Bureau of the Communist Party of China (CPC) Central Committee on Thursday reiterated that China will adhere to the principle that "houses are for living in, not for speculation". Under the principle, a new round of policy tightening is likely in some cities where home price growth tends to exceed market expectations if the development of housing market is off the right track, experts said.

As Beijing is deeply concerned that a property bubble could be damaging to the real economy and the financial sector, top leaders once again vowed to stick to their tightening stance on the property sector at the Politburo meeting, said Lu Ting, chief China economist at Nomura Securities.

Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution, said:"The latest meeting has made it clear that China will continue to stick to the principle that 'houses are for living in, not for speculation'. Local governments and entities should enforce housing market regulations strictly, rather than taking any chances on relevant policy relaxation."